Kahnawake Gaming Commission: its role and Regulations

To legally provide gambling services, it is necessary to apply for a gambling license with the local regulator – the Kahnawake Gaming Commission (KGC) which was established by the Mohawk Council of Kahnawake in 1996. 

The KGC is comprised of three members appointed for two year terms by the KGC’s governing body, the Mohawk Council of Kahnawake.

Speaking about the functions of the KGC, it should be noted that the KGC licenses and regulates interactive gaming (casino, poker, sportsbook) and land based gaming (poker rooms, raffles, electronic gaming devices) conducted within the Mohawk Territory of Kahnawake. 

Next, let’s analyze these types of gaming in more detail: 

1. Interactive Gaming. Kahnawake was one of the first jurisdictions in the world to recognize the opportunities presented by the interactive gaming industry. Since then, the KGC has continuously licensed and regulated a wide range of interactive gaming sites. 

On July 8, 1999, KGC enacted Regulations concerning Interactive Gaming. These Regulations are designed to ensure that all interactive gaming and gaming related activities conducted within or from the Mohawk Territory of Kahnawake satisfy several basic principles, namely:

• to provide a lawful basis for the regulation and control of interactive gaming based in or offered from within the Mohawk Territory of Kahnawake;
• to ensure that interactive gaming is conducted responsibly, fairly and honestly;
• to prevent interactive gaming from being associated in any way with crime or criminality;
• to ensure that the operators of interactive games treat players fairly; that they pay winners promptly and that all information related to player accounts is held in the strictest confidence; and
• to protect persons under the age of eighteen (18) years and other vulnerable persons.

Online gaming operators licensed by the KGC must be hosted by Mohawk Internet Technologies, a data centre located within the Mohawk Territory of Kahnawake and operated by Continent 8 Technologies.

2. Land Based Gaming. The KGC presently licenses and regulates three land based gaming activities: 
3. Poker Rooms. On October 3, 2007 the KGC enacted its Regulations concerning Poker Rooms. In accordance with its Regulations, the KGC licenses and regulates terrestrial poker rooms that are located within the Mohawk Territory of Kahnawake. The approved games that may be offered in any poker room that is licensed and regulated by the KGC are:

• Hold’Em;
• Omaha;
• Omaha High-Low;
• Seven Card Stud;
• Razz (Seven Card Stud Low);
• Seven Card Stud High-Low;
• Lowball;
• Draw High;
• Chinese Poker.

The KGC licenses and regulates four land-based poker rooms. But it should be noted that the KGC is presently not receiving applications for land-based poker rooms.

2. Raffles. On November 9, 2011 the KGC enacted its Regulations concerning Raffles (came into effect on January 1, 2012). The Regulations were developed in response to complaints and concerns that were submitted to the KGC and to the Mohawk Council about unregulated raffles being conducted within Kahnawake. It was decided that there was a need to establish a clear set of rules that would apply to raffles offered within the community. 

Only Eligible Organizations can obtain an authorization to conduct a raffle within Kahnawake. The Regulations define “Eligible Organization as an organization operating in Kahnawake that is recognized by the Mohawk Council of Kahnawake and the KGC as an organization that operates on a non-profit basis and that has as its primary purpose a sporting, cultural, charitable or community-oriented objective”.

The Regulations apply only to raffles – they do NOT apply to lotteries, 50/50 draws or sports pools. The Regulations define “Raffle” as a game where tickets are sold for a chance to win a prize (which can be money or an item of value). Winners are determined by drawing a random ticket or by a random selection of numbers.

Pursuant to its Regulations, the KGC authorizes raffles offering a prize over $5,000 that are conducted by Eligible Organizations within the Mohawk Territory of Kahnawake. In addition, raffles offered by Eligible Organizations are exempt if the total value of the prize (or prizes) is less than $5,000.

3. Electronic Gaming Devices. On March 29, 2018, the KGC enacted its Regulations concerning Electronic Gaming Devices. In accordance with its Regulations, the KGC licenses and regulates electronic gaming devices that are located within the Mohawk Territory of Kahnawake. Please note that the KGC is not presently accepting new applications for land based Electronic Gaming Device Licenses.

Types of gambling licenses in Kahnawake

The KGC issues several types of licenses, authorizations and permits under its Regulations concerning Interactive Gaming:

1. Interactive Gaming Licence (IGL):  Issued to an approved hosting facility in Kahnawake for starting an online casino. Only one IGL may only be issued at any given time. Since 1999, Mohawk Internet Technologies has held the sole IGL issued by the KGC. However, it must be said that the IGL is less popular because of its complicated and long рrocess of obtaining.
2. Client Provider Authorization (CPA):  Issued to approved entities that want to provide interactive gaming services from the hosting facility in Kahnawake. There is no limit on the number of CPA’s that may be issued by the KGC. An CPA holder must be hosted at the hosting facility that holds the IGL and is entitled of offer any type of interactive gaming:  eg. casino, poker and/or sportsbook. This is the most common gambling license in Kahnawake.
3. Casino Software Provider Authorization (CSPA):  The holder of a valid CSPA is entitled to locate and operate interactive gaming equipment at the co-location facility that is owned and operated by the holder of a valid IGL; and license casino software to a third party online gaming operator for the use on the third party online gaming operator’s website but is not entitled to offer interactive games directly to players.
4. Live Dealer Studio Authorization (LDSA):  The holder of a valid LDSA is entitled to operate a Live Dealer Studio, to conduct live dealer games and, if authorized by the KGC, to conduct interactive gaming related activities from premises located within Kahnawake.
5. Inter-Jurisdictional Authorizations (IJA): This license is specifically issued to an entity that possesses an IGL from another jurisdiction but desires to establish some or all of its equipment and/or personnel within the Mohawk Territory of Kahnawake.
6. Key Person Licence (KPL):  Issued to at least one person who performs managerial or operational functions for the entity that holds a CPA or CSPA. The KGC considers the information contained in KPL’s to be confidential.

Benefits of obtaining a gambling license in Kahnawake

Advantages of obtaining a gambling license in Kanawaka include:

• Kanawaka has reliable legislation governing gambling which can be attractive to gambling operators.
• A Kahnawake gambling license adds legitimacy and credibility to an online gambling business. It signifies that the operator has met certain regulatory standards and is committed to fair and responsible gaming practices.
• All gambling companies that hold a Gambling Kahnawake license have tax incentives – 0% corporate tax, gambling tax and gross income tax. 
• Perfect for start-ups with relatively low costs, regulatory support and minimal taxation.
• The KGC has a wealth of experience in regulating online gambling. Its expertise and understanding of the industry can benefit operators by providing guidance on compliance and best practices.
• Operators with a Kahnawake license benefit from the regulatory support and oversight provided by the KGC. This can help resolve disputes, ensure compliance with regulations, and maintain the integrity of the gaming industry.

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